The lastest FRAPS does not split the files in to 4Gb chunks, unless you deliberately set it up that way, they have kept the option for legacy support.
It has taken them far too long to get rid (by default) of the file splitting. It was there because of the limitation of FAT 32 formatted drives, but NTFS has been the norm for donkey's years now. Their refusal to do this long ago (many requests from users) is simply just lame.
As I said in my first post, have you tried other capturing software? As Tiens said, have you tried Afterburner, it's free. Also there is free capturing software built into XFire (xfire.com). Even the payware software usually has a demo version. You need to eliminate things when fault finding to try and reduce the possibilities.
Use the same capture hotkey whatever program you use, and try not to use any key that the game uses by default for another function. For instance you are use the 'A' key, which happens the be the in-game 'gear up' key when using the keyboard. Personally I use Function key F11 with no problems.
As you use the G27 (So do I), have you downloaded and installed the Logitech Profiler software? It's not strictly necessary, as the game's actionmap file for the wheel should work alone, but it's worth having.
http://www.logitech.com/en-us/441/5184?selectedcrid=441&selectedcid=5184&osid=&bit=
If you do have it installed and running from boot (the default), have you tried closing it down, to ensure it's not effecting the game in any way?
So essentially :-
1/ Run the game and use fraps with the Logitech profiler running. (Current situation?)
2/ Run the game and use fraps with the profiler NOT running
If item 2 fixes it, then the profiler is at fault. No difference at all, go to 3
3/ Download and install any other capture software, set it to use the same hotkey as you use in fraps. Run the game and capture a video sequence.
Is it OK now? If it is, then fraps is at fault.
Ensure that you have downloaded and installed the latest fraps, which is always free to those that bought it. Currently 3.5.3
Whatever happens FRAPS is not your only choice, and IMHO is not the best choice (even though I bought it), I rarely use it now.